Montreal Housing Market Bucks Trend

Residential real estate transactions up by 2% in June

According to the MLS data, the resale market in the Montreal Metropolitan Area is bucking the trend in comparison with other large Canadian cities, says the Greater Montreal Real Estate Board. In June 2008, residential transactions were on the rise by 2%, which brings the decrease of sales since the beginning of the year to only 3%.

“Unlike the general trend elsewhere in Canada, the resale market in the Montreal Metropolitan Area is doing well,” says Michel Beausejour, FCA, Chief Executive Officer of the GMREB. “Other large Canadian cities are seeing slower activity, with sales in Toronto decreasing by 14% since the beginning of the year, by 32% in Calgary and by 20% in Vancouver.”

For the Montreal Metropolitan Area, 25,519 transactions were recorded in the MLS® system during the first six months of 2008, a decrease of 3% compared to the 26,430 sales during the same period last year.

“Condominiums go against the tide recorded since the start of 2008 with a cumulative increase of sales of 7% compared to the first six months of 2007, while single-family homes show an equal decrease of 7%,” says Michel Beausejour.

In the sector of Vaudreuil-Soulanges, sales have remained stable, while there is a slight decrease of 2% on the South Shore and Laval and 3% on the Island of Montreal. The North Shore has shown the highest decrease so far this year with a 7% decline.

Price increases stay steady, most notably for single-family homes (+6%) and small income properties (+7%). The more moderate growth of condominium prices (+3%) in the Montreal Metropolitan Area in 2008 can be explained by the changes in sales by geographic area. Condominium sales are becoming more and more popular outside of the Island of Montreal where prices are usually more affordable.

Increase in Sales for June

The number of transactions in June is on the rise by 2% compared to the same period in 2007, reaching 3,757 sales. Stronger activity in the suburbs can be credited for this increase, where sales rose by 4% on the South Shore, 3% on the North Shore and 7% in the Vaudreuil-Soulanges sector.

Condominiums remain the most popular type of property with a 9% increase in sales, while single-family homes decreased minimally (-1%) and plexes (2 to 5 dwellings) remained on par with their performance last year.

On June 30, 2008, the number of active listings in the MLS system had increased by 9% in comparison with the same date last year, giving the potential buyer more options in a seller’s market.